Actuate Reports Fourth Quarter and Full Year 2012 Financial Results

Actuate
Corporation (NASDAQ: BIRT), The BIRT
Company™ – delivering more insights to more people than all
BI companies combined,today announced financial results for the
fourth quarter and full year 2012.

Fourth Quarter 2012 Financial and Operational Highlights:

Overall BIRT business surpassed $100 million, life to date;

License revenue up 17% year-over-year to $15.5 million;

Revenue included 3 transactions with a license component in excess of
$1.0 million;

Fiscal year 2012 non-GAAP revenue of $138.9 million, an increase of 3%
year-over-year;

Revenue included 10 transactions with a license component in excess of
$1.0 million;

Fiscal year 2012 non-GAAP operating margin of 22% and net income
margin of 15%;

Annual fully diluted non-GAAP EPS of $0.39;

Annual operating cash flow of $20.3 million;

Repurchased $25.6 million worth of stock during the year.

“Our fourth quarter and full year 2012 results reflect strong organic
license growth based on our unique, BIRT-based business model and
several astute acquisitions,” said Pete Cittadini, President and CEO of
Actuate. “In addition to the solid performance of our BIRT business, BIRT
iHub consolidates our key offerings, making it even easier for our
customers to evaluate, deploy and manage Actuate technology. iHub has
been created to help our customers to harness Big Data Business
Analytics, Customer Communications Management and Customer Facing
Applications and their intersection with touch devices, for maximum
benefit. Our BIRT iHub business consolidates our BIRT and
acquisition-related revenue streams to provide more transparency into
our business and what fuels our growth.”

Revenues as reported in accordance with U.S. generally accepted
accounting principles (GAAP) for the fourth quarter of 2012 were $35.6
million compared with $35.3 million in the fourth quarter of 2011.
License revenues for the fourth quarter of 2012 were $15.5 million, up
17% when compared with $13.3 million in the fourth quarter of 2011.
Service revenues for the quarter were $20.1 million, compared with $22.1
million reported in the same quarter last year.

GAAP operating income was $3.3 million for the fourth quarter of 2012,
compared with $7.8 million in the fourth quarter of 2011. GAAP net
income for the fourth quarter of 2012 was $0.8 million, or $0.01 per
diluted share, compared with net income of $5.0 million, or $0.10 per
diluted share, in the fourth quarter of 2011.

Non-GAAP net income for the fourth quarter of 2012 was $4.7 million, or
$0.09 per diluted share, compared with non-GAAP net income of $7.9
million, or $0.15 per diluted share in the fourth quarter of 2011.
Non-GAAP operating margin and net income margin for the fourth quarter
of 2012 was 19% and 13%, respectively.

Total revenues as reported in accordance with GAAP for the fiscal year
of 2012 were $138.8 million, up 3% when compared with $135.0 million in
the prior year. License revenues for 2012 were $57.9 million, up 18%
when compared to the prior year $49.2 million. Services revenues for
2012 were $80.9 million, compared with $85.8 million in the prior year.

For 2012, operating income as reported in accordance with GAAP was $18.6
million, compared with $20.9 million in the prior year. GAAP net income
for 2012 was $10.3 million, or $0.20 per diluted share, compared with
$12.0 million, or $0.23 per diluted share in 2011.

For the full fiscal year, non-GAAP net income was $20.9 million, or
$0.39 per diluted share, compared with $25.5 million, or $0.49 per
diluted share, in the prior year. Non-GAAP operating margins for 2012
were 22%, compared with 24% for the prior year. Non-GAAP net income
margins for 2012 were 15%, compared with 19% for the prior year.

Cash flow from operations was $3.8 million for the fourth quarter of
2012. Fiscal year 2012 cash flow from operations was $20.3 million. Cash
and short term investments totaled $66.5 million on December 31, 2012,
down $0.9 million from $67.4 million as of December 31, 2011.

Share Repurchases

In August 2012, the Board of Directors approved a $30 million share
repurchase program, of which $14.4 million remains. During the fourth
quarter of 2012 the Company repurchased $9.6 million worth of stock. The
share repurchase authorization does not have an expiration date and the
pace and timing of repurchases will depend on factors such as cash
generation from operations, the volume of employee stock plan activity,
cash requirements for acquisitions, economic and market conditions,
stock price and legal and regulatory requirements.

Industry leaders participated in Shaku Atre’s Big Data panel at
ActuateOne Live! 2012 in New York and San Francisco;

Launched Xenos Repository, a document indexing, storage and
multi-channel delivery system specifically designed to address
traditional and emerging business and regulatory requirements
associated with high volume customer communications;

Partnership with DataStax for IT departments to organize and analyze
data from Big Data workloads and traditional data sources,
accelerating time to insight for business decision makers;

Collaboration between Actuate BIRT and the Hortonworks
Data Platform, enabling more users to cost effectively analyze
vast amounts of data stored in Hadoop;

Alliance with Cloudera to support Apache Hadoop and BIRT Developers in
Big Data integration, making it easier for organizations to attain
value from data too large to access and interpret using existing
database management tools;

Alliance with KXEN, the leading provider of predictive
analytics for business users, to help companies seeking to improve
decisions and optimize processes by deploying easy to use predictive
analytics on petabytes of data;

Integration of ActuateOne and Pervasive RushAnalyzer™ via
BIRT to expand Big Data analytics possibilities for business users in
any industry and into the BIRT developer community.

BIRT:

BIRT revenue has surpassed $100 million since inception;

The BIRT community has grown to over 2 million BIRT developers
worldwide;

Set records for BIRT license business from open source BIRT users
for four consecutive quarters in 2012;

Significantly higher average license order size from open source
BIRT users in 2012;

99,000 total registrations to date on BIRT Exchange, up from 72,000
a year ago.

During 2012 there were 10 deals with a license component of greater
than a million;

291 deals greater than $100,000 during 2012.

2012 Customer Excellence Award Winners:

North Star BlueScope Steel: for their implementation of
ActuateOne with BIRT, to support replacement of their multiple,
disparate reporting solutions with a single, standard BI framework;

FirstBank: recognized for its implementation of BIRT and
ActuateOne® to develop a single-environment, highly efficient and
integrated enterprise reporting structure that can be managed by BI
developers to ease the burden on the company’s Java and Windows
developers;

The County Sanitation Districts of Los Angeles County (LACSD),
California: recognized for its implementation of BIRT and
ActuateOne to provide all users with custom reporting and dashboards
that visualize high-level information intuitively, but can also easily
and quickly reveal detailed transaction data behind the scenes;

Access Data: awarded in the “BIRT OEM Implementation” category,
for the implementation of ActuateOne v11 with BIRT embedded as part of
their SalesVision® platform, an enterprise data management and
reporting solution.

Actuate named one of the 75 Top
Workplaces in the Bay Area by the San Jose Mercury News and
Workplace Dynamics’ list of Top Workplaces in 2012;

Received the MarketTools ACE Award for customer satisfaction for the
fifth year in a row. The MarketTools ACE Awards program certifies,
acknowledges, and celebrates outstanding achievement in customer
satisfaction, employee satisfaction, and partner satisfaction;

Actuate received a GOVTek award and named “Top Solution Provider to
Watch for in 2012” by the Government Technology Research Alliance
(GTRA).

Actuate’s management will be holding a conference call at 2:00 p.m. PT
(5:00 p.m. ET) today, February 4, 2013 to further discuss these results.
The dial-in number for the call is 877-407-8035 (201-689-8035 for
international participants) and the conference ID is #407018. The
conference call will be broadcast live on the Investor Relations section
of Actuate’s web site at http://www.actuate.com/investor
and will be available as an archived replay for a limited time
thereafter.

Actuate founded and co-leads the BIRT
open source project, which is used by more than 2 million developers
around the globe and serves as the foundation of the ActuateOne®
platform. Applications built on ActuateOne deliver more business and
consumer insights to more people than all BI companies combined -
ensuring organizations are ready for the exponential growth of Big Data
and the proliferation of touch devices.

This press release contains financial measures that are not calculated
in accordance with U.S. generally accepted accounting principles (GAAP).
Actuate management evaluates and makes operating decisions using various
performance measures. In addition to our GAAP results, we also consider
adjusted net income, which we refer to as non-GAAP net income. We
further consider various components of non-GAAP net income such as
non-GAAP gross margin and non-GAAP operating expense. Non-GAAP net
income is generally based on the revenues of our product, maintenance
and services business operations and the costs of those operations, such
as cost of revenue, research and development, sales and marketing and
general and administrative expenses, that management considers in
evaluating our ongoing core operating performance. Non-GAAP net income
consists of net income excluding amortization of intangible assets,
equity plan-related compensation expenses, acquisition related expenses,
restructuring charges, asset impairment costs, non-recurring facilities
adjustments, other one-time termination costs, foreign currency exchange
gains and losses related to the revaluation of monetary assets and
liabilities and other charges and gains which management does not
consider reflective of our core operating business. Non-GAAP net income
also includes an adjustment to add back revenue that could not be
recognized due to the impact of purchase accounting on the acquired
Quiterian and Xenos revenue contracts. Intangible assets consist
primarily of purchased technology, in-process research and development,
trade names, customer relationships, employment agreements and other
intangible assets issued in connection with acquisitions. Restructuring
charges consist of severance and benefits, excess facilities and
asset-related charges and include strategic reallocations or reductions
of personnel resources. Equity plan-related compensation expenses
represent the fair value of all share-based payments to employees,
including grants of employee stock options recognized during the period.
For purposes of comparability across other periods and against other
companies in our industry, non-GAAP net income is adjusted by the amount
of additional taxes or tax benefit that the Company would accrue using a
normalized effective tax rate applied to the non-GAAP results. Our
non-GAAP earnings per share calculation also includes an adjustment to
total outstanding shares to reflect what the share amount would have
been if it were calculated using non-GAAP results.

Non-GAAP net income is a supplemental measure of our performance that is
not required by, nor presented in accordance with, GAAP. Moreover, it
should not be considered as an alternative to net income, operating
income, or any other performance measure derived in accordance with
GAAP, or as an alternative to cash flow from operating activities or as
a measure of our liquidity. We present non-GAAP net income because we
consider it an important supplemental measure of our performance.

Management excludes from non-GAAP net income certain recurring items to
facilitate its review of the comparability of the Company's core
operating performance on a period-to-period basis because such items are
not related to the Company's ongoing core operating performance as
viewed by management. Management uses this view of its operating
performance for purposes of comparison with its business plan and
individual operating budgets and allocations of resources. Additionally,
when evaluating potential acquisitions, management excludes the items
described above from its consideration of target performance and
valuation.

The Company believes that, in general, these items possess one or more
of the following characteristics: their magnitude and timing is largely
outside of the Company's control; they are unrelated to the ongoing
operation of the business in the ordinary course; they are unusual and
the Company does not expect them to occur in the ordinary course of
business; or they are non-operational, or non-cash expenses involving
stock option grants.

The Company believes that the presentation of these non-GAAP financial
measures is warranted for several reasons:

1) Such non-GAAP financial measures provide an additional analytical
tool for understanding the Company's financial performance by excluding
the impact of items that may obscure trends in the core operating
performance of the business;

2) Since the Company has historically reported non-GAAP results to the
investment community, the Company believes the inclusion of non-GAAP
numbers provides consistency and enhances investors' ability to compare
the Company's performance across financial reporting periods;

3) These non-GAAP financial measures are employed by the Company's
management in its own evaluation of performance and are utilized in
financial and operational decision making processes, such as budget
planning and forecasting;

4) These non-GAAP financial measures facilitate comparisons to the
operating results of other companies in our industry, which use similar
financial measures to supplement their GAAP results, thus enhancing the
perspective of investors who wish to utilize such comparisons in their
analysis of the Company's performance.

a) Amortization charges for purchased technology and other intangible
assets are excluded because they are inconsistent in amount and
frequency and are significantly impacted by the timing and magnitude of
the Company's acquisition transactions. We analyze and measure our
operating results without these charges when evaluating our core
performance. Generally, the impact of these charges to the Company's net
income tends to diminish over time following an acquisition.

b) While stock-based compensation constitutes an ongoing and recurring
expense of the Company, it is not an expense that typically requires or
will require cash settlement by the Company. We therefore exclude these
charges for purposes of evaluating our core performance as well as with
respect to evaluating any potential acquisition.

c) Restructuring charges are primarily related to severance costs and/or
the disposition of excess facilities driven by modifications of business
strategy. These costs are excluded because they are inherently variable
in size, and are not specifically included in the Company's annual
operating plan and related budget due to the rapidly changing facts and
circumstances typically associated with such modifications of business
strategy.

d) Other one-time termination costs relate to benefits provided to the
estate of one of Actuate’s senior executives who passed away on December
31, 2010. The benefits were approved by the Compensation Committee of
the Board of Directors in February 2011. These costs are excluded
because they are non-recurring and are not specifically included in the
Company’s annual operating plan and related budget. Management believes
that these costs are unrelated to the ongoing operation of its business
in the ordinary course and are non-operational.

e) The deferred revenue adjustment relates to our prior acquisitions,
which were concluded in February 2010 and October 2012. In accordance
with the fair value provisions of Accounting Standards Codification
("ASC") 805, Business Combinations, acquired deferred revenue recorded
on the opening balance sheet was lower than the historical carrying
value. This purchase accounting requirement adversely impacts the
Company's reported GAAP revenue primarily for the first twelve months
post-acquisition. In order to provide investors with financial
information that facilitates comparison of both historical and future
results, the Company has provided non-GAAP financial measures which
exclude the impact of the purchase accounting adjustment. The Company
believes that this non-GAAP financial adjustment is useful to investors
because it allows investors to (a) evaluate the effectiveness of the
methodology and information used by management in its financial and
operational decision-making and (b) compare past and future reports of
financial results of the Company as the revenue reduction related to
acquired deferred revenue will not recur when related terms are renewed
in future periods.

f) Foreign currency exchange gains and losses represent the net gain or
loss that Actuate has recorded for the impact of currency exchange rate
movements on monetary assets and liabilities denominated in foreign
currencies related to the revaluation of these assets and liabilities.
Actuate presents non-GAAP financial information excluding foreign
exchange gains and losses for several reasons. These foreign currency
gains and losses are generally unpredictable and can cause Actuate’s
reported results to vary significantly. The magnitude and timing of
these gains and losses are largely outside of Actuate’s control because
Actuate has not engaged in hedging or taken other actions to reduce the
likelihood of incurring a sizeable net gain or loss in future periods.
Management believes that these gains and losses are unrelated to the
ongoing operation of its business in the ordinary course and are
non-operational. Management therefore excludes these items for the
purposes of evaluating core performance and they are not specifically
included in the Company’s annual operating plans, budgets or management
compensation structure. Actuate believes that investors benefit from a
supplemental non-GAAP financial measure that excludes these items
because it allows more meaningful comparability of results between
periods and enables investors to compare Actuate’s core operating
results in different periods without this variability.

g) The Facilities Adjustment relates to the Company’s new and old
headquarters facilities and their related leases. In the second quarter
of fiscal 2012 the Company initiated a lease for its new headquarters in
the BayCenter facility, which the Company occupied in July 2012. As a
result of this new lease, the Company incurred duplicate rent during a
portion of the second quarter of fiscal 2012 as it was paying rent on
both the old Bridgepointe campus and the new BayCenter facility. The
Facilities Adjustment compensates for this duplicate rent. In addition,
as part of the old lease, Actuate was required to restore the facility
back to its original condition upon expiration of the lease period. The
Facilities Adjustment serves to add restoration costs on the old
headquarters facility back to income.

The Facilities Adjustment is made for non-GAAP purposes because the
underlying costs are non-recurring in nature, are unrelated to the
Company's core operations in the ordinary course, and are not included
in our annual operating plan and related budget. They are directly
impacted by the timing of the Company's lease transactions and we
analyze and measure our operating results without these charges when
evaluating our core performance. Actuate believes that investors benefit
from a supplemental non-GAAP financial measure that excludes these items
because it allows more meaningful comparability of results between
periods and enables investors to compare Actuate’s core operating
results in different periods without this variability.

h) Asset impairment costs are excluded because they inherently vary in
size and are not specifically included in the Company's annual operating
plan. Furthermore, asset impairment charges do not typically require any
cash outlay and the timing of such impairments is largely outside of the
Company's control.

i) Income tax expense is adjusted by the amount of additional expense or
benefit that we would accrue if we used non-GAAP results instead of GAAP
results in the calculation of our tax liability, taking into
consideration the Company's long-term tax structure. The Company is
using a normalized effective tax rate of 30% for 2012. Prior to 2012 the
Company used a normal non-GAAP tax rate of 20%. This adjustment is made
because the rate remains subject to change based on several factors,
including variations over time in the geographic business mix and
statutory tax rates. This non-GAAP estimated tax rate is reviewed
annually.

j) Acquisition-related costs are costs incurred in concluding our
acquisition of Quiterian. The acquisition was completed in October 2012.
These costs are excluded because they are inconsistent in amount and
frequency and are directly impacted by the timing and magnitude of the
Company’s acquisition transactions. We analyze and measure our operating
results without these charges when evaluating our core performance.
These acquisition-related costs are unrelated to the Company’s core
operations in the ordinary course and are not included in our annual
operating plan and budget.

In the future, the Company expects to continue reporting non-GAAP
financial measures excluding items described above and the Company
expects to continue to incur expenses similar to the non-GAAP
adjustments described above. Accordingly, exclusion of these and other
similar items in our non-GAAP presentation should not be construed as an
inference that these costs are unusual, infrequent or non-recurring.

As stated above, the Company presents non-GAAP financial measures
because it considers them to be important supplemental measures of
performance. However, non-GAAP financial measures have limitations as an
analytical tool and should not be considered in isolation or as a
substitute for the Company's GAAP results. In the future, the Company
expects to incur expenses similar to the non-GAAP adjustments described
above and expects to continue reporting non-GAAP financial measures
excluding such items. Some of the limitations in relying on non-GAAP
financial measures are:

Amortization of intangibles, though not directly affecting our current
cash position, represent the loss in value as the technology in our
industry evolves, is advanced or is replaced over time. The expense
associated with this loss in value is not included in the non-GAAP net
income presentation and therefore does not reflect the full economic
effect of the ongoing cost of maintaining our current technological
position in our competitive industry, which is addressed through our
research and development program.

The Company may engage in acquisition transactions in the future.
Merger and acquisition related charges may therefore continue to be
incurred and should not be viewed as non-recurring.

The Company's employee equity incentive and employee stock purchase
plans are important components of our incentive compensation
arrangements and will be reflected as expenses in our GAAP results for
the foreseeable future.

The Company's income tax expense will be ultimately based on its GAAP
taxable income and actual tax rates in effect, which may differ
significantly from the rate assumed in our non-GAAP presentation.

Other companies, including other companies in our industry, may
calculate non-GAAP financial measures differently than we do, limiting
their usefulness as a comparative measure.

Pursuant to the requirements of SEC Regulation G, a detailed
reconciliation between the Company's GAAP and non-GAAP financial results
is provided in this press release and is available in the investor
relations section of the Company's web site for a limited time at http://www.actuate.com/investor.
Investors are advised to carefully review and consider this information
strictly as a supplement to the GAAP results that are contained in this
press release and in the Company's SEC filings.

Cautionary Note Regarding Forward Looking Statements: The statements
contained in this press release that are not purely historical are
forward looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. These include statements regarding
Actuate’s expectations, beliefs, hopes, intentions or strategies
regarding the future. All such forward-looking statements are based upon
information available to Actuate as of the date hereof, and Actuate
disclaims any obligation to update or revise any such forward-looking
statements based on changes in expectations or the circumstances or
conditions on which such expectations may be based. Actual results could
differ materially from Actuate’s current expectations. Factors that
could cause or contribute to such differences include, but are not
limited to, the general spending environment for information technology
products and services in general and Rich Internet Application,
performance management, business intelligence and print stream software
in particular, quarterly fluctuations in our revenues and other
operating results, our ability to expand our international operations,
our ability to successfully compete against current and future
competitors, the impact of acquisitions including the acquisition of
Quiterian on the Company’s financial and/or operating condition, the
ability to increase revenues through our indirect distribution channels,
general economic and geopolitical uncertainties and other risk factors
that are discussed in Actuate’s Securities and Exchange Commission
filings, specifically Actuate 2011 Annual Report on Form 10-K filed on
March 9, 2012 as well as its quarterly reports on Form-10Q.

Changes in operating assets and liabilities, net of acquired assets
and assumed liabilities:

Accounts receivable, net

(5,690

)

1,798

Other current assets

(2,605

)

(43

)

Accounts payable

(125

)

(173

)

Accrued compensation

238

42

Other accrued liabilities

191

821

Deferred tax assets, net of liabilities

2,920

1,280

Deferred tax liabilities

(535

)

(1

)

Income tax receivable

(1,690

)

(1,150

)

Income tax payable

2,817

2,125

Other deferred liabilities

3,136

(248

)

Restructuring liabilities

305

(1,107

)

Deferred revenue

1,458

(1,185

)

Net cash provided by operating activities

20,340

21,222

Investing activities

Purchases of property and equipment

(5,572

)

(640

)

Proceeds from maturity of investments

31,863

64,383

Purchases of short-term investments

(32,288

)

(46,853

)

Acquisitions, net of cash acquired

(4,465

)

-

Proceeds from security deposits and other

(139

)

111

Net cash provided by (used in) investing activities

(10,601

)

17,001

Financing activities

Pay-down of the Credit facility & other loan obligations

(1,331

)

(40,000

)

Debt issuance cost

(63

)

25

Excess tax benefit from exercise of stock options

3,054

3,485

Purchases of minority shares of Actuate Japan

-

(594

)

Proceeds from issuance of common stock

12,289

14,371

Stock repurchases

(25,554

)

(9,998

)

Net cash used in financing activities

(11,605

)

(32,711

)

Effects of exchange rates on cash and cash equivalents

590

(22

)

Net increase (decrease) in cash and cash equivalents

(1,276

)

5,490

Cash and cash equivalents at the beginning of the period

38,759

33,269

Cash and cash equivalents at the end of the period

$

37,483

$

38,759

ACTUATE CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

(unaudited)

Three Months Ended

Twelve Months Ended

Revenue reconciliation:

December 31,

(a)

December 31,

(a)

2012

2011

Notes

2012

2011

Notes

GAAP revenue

$

35,576

$

35,308

$

138,819

$

134,943

Non-GAAP adjustments:

Deferred revenue adjustments

80

4

(g)

80

87

(g)

Total non-GAAP revenues

$

35,656

$

35,312

$

138,899

$

135,030

Three Months Ended

Twelve Months Ended

December 31,

(a)

December 31,

(a)

Operating expense reconciliation:

2012

2011

Notes

2012

2011

Notes

GAAP operating expenses

$

32,238

$

27,524

$

120,262

$

114,042

Non-GAAP adjustments:

Amortization of purchased technology

(283

)

(273

)

(b)

(1,103

)

(1,094

)

(b)

Amortization of other intangibles

(336

)

(289

)

(c)

(1,203

)

(1,296

)

(c)

Stock-based compensation expense

(1,731

)

(1,351

)

(d)

(7,335

)

(5,847

)

(d)

Restructuring charges

(442

)

-

(e)

(496

)

(889

)

(e)

Acquisition related costs

(397

)

-

(f)

(565

)

-

(f)

Other one-time termination costs

-

-

-

(148

)

(h)

Facilities adjustment

-

-

(380

)

-

(i)

Asset impairment

(86

)

-

(175

)

(1,681

)

(j)

Total non-GAAP operating expenses

$

28,963

$

25,611

$

109,005

$

103,087

Three Months Ended

Twelve Months Ended

Operating income reconciliation:

December 31,

(a)

December 31,

(a)

2012

2011

Notes

2012

2011

Notes

Total non-GAAP revenues

$

35,656

$

35,312

$

138,899

$

135,030

Total non-GAAP operating expenses

(28,963

)

(25,611

)

(109,005

)

(103,087

)

Total non-GAAP operating income

$

6,693

$

9,701

$

29,894

$

31,943

Three Months Ended

Twelve Months Ended

Net income reconciliation:

December 31,

(a)

December 31,

(a)

2012

2011

Notes

2012

2011

Notes

GAAP income before income taxes

$

2,704

$

8,114

$

18,431

$

19,610

Non-GAAP adjustments:

Amortization of purchased technology

283

273

(b)

1,103

1,094

(b)

Amortization of other intangibles

336

289

(c)

1,203

1,296

(c)

Stock-based compensation expense

1,731

1,351

(d)

7,335

5,847

(d)

Restructuring charges

442

-

(e)

496

889

(e)

Acquisition related costs

397

-

(f)

565

-

(f)

Deferred revenue adjustments

80

4

(g)

80

87

(g)

Other one-time termination costs

-

-

(h)

-

148

(h)

Facilities adjustment

-

-

(i)

380

-

(i)

Asset impairment

86

-

(j)

175

1,681

(j)

Foreign currency exchange (gain)/loss

591

(135

)

(k)

86

1,179

(k)

Non-GAAP income before income taxes

6,650

9,896

29,854

31,831

Non-GAAP tax provision

1,995

1,979

(l)

8,956

6,366

(l)

Non-GAAP net income

4,655

7,917

20,898

25,465

Basic non-GAAP net income per share

$

0.10

$

0.16

$

0.43

$

0.54

Shares used in basic per share calculation

48,652

48,603

49,033

47,309

Diluted non-GAAP net income per share

$

0.09

$

0.15

$

0.39

$

0.49

Shares used in diluted per share calculation

51,605

52,714

(m

)

52,924

51,995

(m)

(a) This table contains financial measures that are not calculated
in accordance with U.S. generally accepted accounting principles
(GAAP). Such measures are intended to serve as a supplement to the
GAAP results presented elsewhere in this press release, and should
not be considered in isolation or as a substitute for such GAAP
results. See the section entitled Discussion of Non-GAAP Financial
Measures in this press release for additional information regarding:
the manner in which management uses these non-GAAP financial
measures; the economic substance behind management's decision to use
such measures; the material limitations associated with use of these
non-GAAP financial measures as compared to the use of the most
directly comparable GAAP financial measures; the manner in which
management compensates for these limitations when using these
non-GAAP financial measures; and the substantive reasons why
management believes these non-GAAP financial measures provide useful
information to investors.

(b) Amortization of purchased technology acquired in prior
acquisitions . Purchased technology is amortized over the estimated
life of the underlying asset.

(c) Amortization of other intangibles includes identifiable
intangible assets including trade names, employment agreements and
customer relationships acquired through various acquisition
transactions. Other identified intangibles are amortized over the
estimated remaining life of the underlying intangibles.

(d) Actuate accounts for stock-based compensation expense under the
fair value method in accordance with the authoritative guidance
issued by the Financial Accounting Standards Board ("FASB") related
to the measurement and disclosure of stock-based compensation
expense. Stock-based compensation expense is measured at the grant
date based on the fair value of the award and is recognized as
expense over the requisite service period. For the three months
ended December 31, 2012, stock-based expense included approximately
(in thousands): $98, $501, $126, and $1,006, related to cost of
services revenues, sales and marketing expense, research and
development expense and general and administrative expense,
respectively.

(e) The restructuring expense for the fourth quarter of 2012
consists primarily of employee severance and related matters in
Europe.

(f) Costs associated with the acquisition of Quiterian.

(g) The deferred revenue adjustment relates to our prior
acquisitions which were concluded in February of 2010 and October
of 2012. In accordance with the fair value provisions of
Accounting Standards Codification ("ASC") 805, Business
Combination, acquired deferred revenues that were recorded on the
opening balance sheet were lower than the historical carrying
value. This purchase accounting requirement adversely impacts the
Company's reported GAAP revenue primarily for the first twelve
months post-acquisition. In order to provide investors with
financial information that facilitates comparison of both
historical and future results, the Company has provided non-GAAP
financial measures which exclude the impact of the purchase
accounting adjustment.

(h) Other one-time termination costs relate to benefits provided to
the estate of one of Actuate's senior executives who passed away on
December 31, 2010. The benefits were approved by the Compensation
Committee of the Board of Directors in February 2011.

(i) The lease on our new headquarters located at 951 Mariners
Island Boulevard commenced on June 1, 2012. However, we relocated
to this new facility on July 23, 2012. During the second quarter
and as a result of our contractual commitments, we incurred rent
expenses on both the Bridgepointe and the Mariners Island
facilities. The rent adjustment above prorates and adjusts the
rent expenses during the quarter to only include rent for the
occupied Bridgepointe facility. We also incurred a one-time lease
restoration charge associated with the Bridgepointe facility
during the second quarter of 2012.

(j) For fiscal 2012 the amount represents the impairment of fixed
assets. For fiscal 2011 the amount represents impairment of the
remaining balance of Xenos In-process Research and Development
("IPR&D").

(k) Foreign currency exchange gains and losses represent the net
gain or loss that Actuate has recorded for the impact of currency
exchange rate movements on monetary assets and liabilities
denominated in foreign currencies related to the revaluation of
these assets and liabilities.

(l) Income tax expense is adjusted by the amount of additional
expense or benefit that we would accrue if we used non-GAAP results
instead of GAAP results in the calculation of our tax liability,
taking into consideration the company's long-term tax structure. The
Company use a normalized effective tax rate of 30% in 2012. Prior to
fiscal 2012, the Company used a normalized effective rate of 20%.

(m) Shares used in calculating diluted earnings per share have been
adjusted to reflect what the share amounts would have been if they
were calculated using non-GAAP results.

For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space.
In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...

SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.

The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.

Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy.
How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...

MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs.
The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.

Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world.
Get ready to learn the facts:
Is there a bias against women in the tech / developer communities?
Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions?
Some beginnings of what to do about it!
In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...

In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.

The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional?
In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.

Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting.
In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.

It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed.
In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.

Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years.
In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.

There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.

Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services.
“In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.

Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.

The enterprise market will drive IoT device adoption over the next five years.
In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products.
John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...

"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.

SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...

Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.

"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.

Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.

Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, "I can harden it against attack, but not on this timeline"; "I can make it better, but it will cost more"; "I can deliver faster, but not with these specs"; or "I can stay strong on cost control, but quality will suffer"? In the new application economy, these tradeoffs are no longer acceptable. Customers will ...

JavaScript is primarily a client-based dynamic scripting language most commonly used within web browsers as client-side scripts to interact with the user, browser, and communicate asynchronously to servers.
If you have been part of any web-based development, odds are you have worked with JavaScript in one form or another. In this article, I'll focus on the aspects of JavaScript that are relevant within the Node.js environment.

Technology changes at the speed of light. To say it can be hard to keep up is an understatement. For performance engineers, taking charge of your own continuing education is one of the most important things you can do to remain at the top of your game.

Most developers learn best by examples, which naturally tend to simplify matters and omit things that aren’t essential for understanding. This means that the “Hello World” example, when used as starting point for an application, may be not suitable for production scenarios at all.
I started using Node.js like that and I have to confess that it took me almost two years to quantify the huge performance impact of omitting a single environment variable. In fact it was just a coincidence that I even...

It is interesting to me, how quickly the hype cycle of a good thing can turn it into a monster that will inevitably eat itself, leaving a much smaller – and much more useful – concept or toolset behind. It has happened over and over in high tech, one need only say “XML” to understand what I mean. It is definitely a useful tool for some jobs, but the “XML Everywhere” craze was insane. People declaring such patently false ideas as “It will end the need for programmers.”

As companies embrace the DevOps movement, they rely heavily on automation to improve the time to market for new features and services. DevOps is a long, never-ending journey with a goal of continuously improving the software delivery process, resulting in better products and services and, ultimately, happier customers. At the beginning of their DevOps journeys, many companies focus on continuous integration (CI), in which they automate the build process. Automated testing is implemented so that ...

It's been three years since I compared medieval security to web security, and a few things have happened. Mobile and wireless have evolved as the dominant platforms, while the life between personal computing and business computing has continued to fray. And, of course, thanks to web services, the web-delivered API now dominates the connected world.
It's time to take a second look, focusing on the API. That is, if our organization is a castle, then the API is the unique services that people ca...

In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at Logz.io, and Tomer Levy, co-founder and CEO of Logz.io, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data.
They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...

"To us DevOps is actually a movement that at the very center is about developers and IT operations teams collaborating in a framework that drives agility, drives the ideation to production readiness in a seamless manner," explained Monish Sharma, Director in PwC's consulting business, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.

Beginning with Ruxit Agent v1.73, Ruxit provides root cause analysis for Node.js errors down to the code level. As with other services, Ruxit marks web requests to Node.js as failed based on the accompanying HTTP error code.
Simply click the Failure rate portion of any Node.js service infographic to view the Failure analysis chart. If you have failures, click the View details of failures button to see which requests failed along with an overview of failure reasons sorted by HTTP code. You can s...

One of the ways to increase scalability of services – and applications – is to go “stateless.” The reasons for this are many, but in general by eliminating the mapping between a single client and a single app or service instance you eliminate the need for resources to manage state in the app (overhead) and improve the distributability (I can make up words if I want) of requests across a pool of instances. The latter occurs because sessions don’t need to hang out and consume resources that could ...

SYS-CON Events announced today that Logz.io has been named a “Bronze Sponsor” of SYS-CON's @DevOpsSummit Silicon Valley, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Logz.io provides open-source software ELK turned into a log analytics platform that is simple, infinitely-scalable, highly-available, and secure.
For more information, visit http://logz.io/.

Approved this February by the Internet Engineering Task Force (IETF), HTTP/2 is the first major update to HTTP since 1999, when HTTP/1.1 was standardized. Designed with performance in mind, one of the biggest goals of HTTP/2 implementation is to decrease latency while maintaining a high-level compatibility with HTTP/1.1. Though not all testing activities will be impacted by the new protocol, it's important for testers to be aware of any changes moving forward.

Much has already been written about the virtues of Docker, and containers in general like CoreOS or Kubernetes. How life-changing Docker is, how innovative, etc. However, the real secret to Docker's success in the marketplace is the hidden retribution of innovation. Innovation and R&D is the lifeblood of today's technology success. Companies, no matter how large, must iterate constantly to stay ahead of their legacy competitors and new upstarts risking disruption. The rise of Agile methodologies...

Brand owners are caught in a digital crossfire.
From one direction comes intense competitive pressure to innovate or to at least follow very, very quickly. From the precisely opposite direction comes the potentially existential threat of an app very publicly flopping or – even worse – being very publicly revealed to jeopardize the customer’s well-being.
Either way, you lose brand value in a social marketplace where brand is your primary currency.
What’s a brand owner to do?

A website visit may involve a wide range of components many of which are off-site or not easily monitored. So what do you have in your toolbox to help address this? Load testing, real-user monitoring and site instrumentation all help you prepare for and monitor your website visitors’ experiences. But one more tool that’s essential for a performance engineer is synthetic user monitoring. It’s a critical part of a web monitoring strategy, however for many people, it’s uncharted territory. So, in t...

Stage setting: Camera is positioned above the treetop of one of three tall poplars. It looks down on the terrace of a pub. It’s evening, but there’s still enough light to see that the terrace is sparsely populated.
Camera slowly moves down towards a specific table in the corner…
As the camera moves down, an old, crummy typewriter font appears on the screen, typing with distinct sound. It spells:

This week, I joined SOASTA as Senior Vice President of Performance Analytics. Given my background in cloud computing and distributed systems operations — you may have read my blogs on CNET or GigaOm — this may surprise you, but I want to explain why this is the perfect time to take on this opportunity with this team. In fact, that’s probably the best way to break this down. To explain why I’d leave the world of infrastructure and code for the world of data and analytics, let’s explore the timing...

Unbeknownst to some, organizations have run infrastructure containers in production for years, reaping benefits on the operational end but not yet providing value for developers. When Docker catapulted containers into mainstream adoption, another type of container emerged — one that’s enormously popular for developers, but not quite ready for Ops. It’s time to close the gap between the promise that Devs see in containers and the operational challenges of actually running them in production.
In...

You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently.
In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.

Cloud computing budgets worldwide are reaching into the hundreds of billions of dollars, and no organization can survive long without some sort of cloud migration strategy. Each month brings new announcements, use cases, and success stories.